UPDATE 1-Mexico's annual inflation hits another record low in September

MEXICO CITY Oct 8 (Reuters) - Mexico's annual inflation
rate set a new record low in September, pointing to little
pressure on consumer prices despite a sharp slump in the peso
this year in Latin America's second-largest economy.

Inflation in the 12 months through September
cooled to 2.52 percent, the national statistics agency said on
Thursday, below the 2.59 percent rate in August and the 2.57
percent forecast in a Reuters poll.

Weak growth in Mexico has helped tame inflation, which hit a
series of record lows, well beneath the central bank's 3 percent
target.

However, the central bank is still expected to raise
interest rates when U.S. borrowing costs move higher, in order
to try to prevent the peso's depreciation from deepening and
driving up consumer prices.

In September, consumer prices rose 0.37 percent
from August, below the poll's expectations for an advance of
0.42 percent.

The core price index, which strips out volatile
food and energy prices, rose 0.37 percent. That compared with
expectations for a 0.36 percent rise.

The 12-month core inflation rate was 2.38
percent in September, in line with analysts' forecasts.
(Reporting by Alexandra Alper; Editing by Lisa Von Ahn)